25 Pages Posted: 11 Jun 2009 Last revised: 26 May 2012
Date Written: June 9, 2009
Any time a new market is entered and a new brand is created, whether it is the market for corporate governance laws or consumer electronics, it is essential to understand the market and have a clear vision of what the brand is supposed to be. When the North Dakota Publicly Traded Corporations Act (Act) became law on July 2, 2007, the state of North Dakota officially entered (or tried to enter) the corporate governance market. Rather than adding to the already significant debate about the value of increased shareholder rights or arguing that the Act was bad (or good) for North Dakota, this Article argues that there were, and are, legislative and public relations options that are necessary if North Dakota is to reap any lasting benefit from passage of the Act. After reviewing the Act and discussing the expected impacts, the Article explains that North Dakota already had plenty to offer corporations and shareholders, and that measures other than the Act are more likely to entice new organizations (or reorganizing companies) to the State. Although North Dakota has gained some national recognition for taking innovative and unique (if largely ineffective) measures in an area traditionally dominated by Delaware, additional steps are needed if the Act is to have more than fleeting significance.
Keywords: corporate governance, North Dakota Publicly Traded Corporations Act, reincorporation, shareholder rights
JEL Classification: K22, M30
Suggested Citation: Suggested Citation
Fershee, Joshua P., The North Dakota Publicly Trade Corporations Act: A Branding Initiative Without a (North Dakota) Brand (June 9, 2009). North Dakota Law Review, Vol. 84, No. 4, p. 1085.. Available at SSRN: https://ssrn.com/abstract=1416836